Democratic Party courts Busan, Ulsan with budget talks in first such meetings of 9th local government term

The leadership of the Democratic Party of Korea visited Ulsan and Busan on Friday, holding budget policy consultations with the two metropolitan governments to discuss strategies for securing national funding in 2027. With the government's budget proposal now before the National Assembly, attention is focused on what the party-government talks will yield when the final budget is approved at year's end.

The 2026 budget policy consultation between Ulsan and the Democratic Party opened at 3 p.m. Friday in the second-floor main conference room of Ulsan City Hall. The Democratic Party delegation included Party Leader Kim Min-seok, Floor Leader Han Byung-do, Policy Committee Chairman Kwon Chil-seung, Budget and Accounts Special Committee negotiator Jeong Tae-ho, Good Local Government Committee Chairman Yeom Tae-young and Ulsan chapter chairman Kim Tae-seon. Ulsan was represented by Mayor Kim Sang-uk and City Council Vice Speaker Son Geun-ho, among others.

Ulsan's allocation in the government's 2027 budget proposal stands at 3.02 trillion won ($2.22 billion), surpassing 3 trillion won for the first time in history. Some projects were left out of the government proposal, however, making National Assembly increases necessary. The city asked that 10 projects receive additional funding through the Assembly review process, focusing on industrial AI transformation, energy and transportation.

In the AI transformation category, the city put forward four requests: construction of a Heavy-Duty AI demonstration center at Ulsan National Institute of Science and Technology (UNIST) at a cost of 45 billion won; establishment of a K-shipbuilding pilot unmanned digital factory at 30 billion won; construction of the Bangucheon World Petroglyphs Center; and development of a shipbuilding AI transformation-specialized AI model house. On energy, the city requested the relocation of the headquarters of Korea Power and the Korea Energy Resources Corporation to Ulsan, and the swift advancement of Phase 2 of the Ulsan Port Energy Hub project.

In transportation, the city requested that the southeastern circular metropolitan railway and the Munsu bypass congestion road improvement project pass their preliminary feasibility reviews; that the Ulsan (Taehwagang)–Gadeok New Airport metropolitan railway and the Ulsan–Gyeongsan expressway be incorporated into national plans; and that the new national highway between Cheongnyang and Beomseo be fast-tracked.

"AI transformation, energy and transportation are tasks directly tied to Ulsan's future competitiveness and the lives of its citizens," Mayor Kim said. "I ask the central party leadership to join forces in securing budgets for projects that need National Assembly increases and in resolving local issues."

In Busan, a budget policy consultation between the city and the Democratic Party was held at 5:30 p.m. Friday in the first-floor main conference room of Busan City Hall. About 40 people attended, including Mayor Jeon Jae-soo, Party Leader Kim, Floor Leader Han, Busan chapter chairman Park Hong-bae and Busan City Council Democratic Party floor leader Han Gap-yong. It was the first budget policy consultation between Busan and the Democratic Party's central leadership since the launch of the ninth term of local government.

Busan presented 10 national funding projects for discussion, including construction of Gadeok New Airport at a total project cost of 15.86 trillion won; establishment of a next-generation power semiconductor production platform; creation of a national quantum innovation center in the Centum 2 district at a total project cost of 480 billion won, with 300 billion won in national funding; and development of large-fuselage technology for next-generation aircraft based on domestically produced composite materials.

Six of those projects not included in the government's proposal were flagged for central party support. The city also requested consideration of a second round of public institution relocations to the regions, construction of a mixed-use dome arena at the North Port, establishment of a Southeast Investment Corporation and development of a safe drinking water supply system.

"Busan stands at a critical juncture in its rise as a hub of innovation and growth in the southern region and as a maritime capital," Mayor Jeon said, calling on the party leadership for full support and National Assembly-level cooperation. "The key pending issues and national funding tasks facing Busan are essential to balanced national development and strengthening competitiveness."

Busan had held a separate budget policy consultation with People Power Party lawmakers from the city in Yeouido, Seoul, on Sept. 2, and on Wednesday Mayor Jeon and the Busan chapter chairs of both parties convened a joint ruling party-opposition-government meeting.